$100m off power bills after solar credits scheme axed early

HOUSEHOLDS will avoid up to $100 million in power bill increases next year because a green scheme is being axed early.

The Gillard Government said it would phase out its solar credits multiplier in January, six months ahead of schedule, because a massive surge in panels fitted to roofs was driving up electricity costs.

The multiplier effectively provides double payments for solar energy created by homes with photovoltaic panels.

But Climate Change Minister Greg Combet said households had borne the brunt of those payments, through higher power bills, and the multiplier should be scrapped early.

"This will lower the impact of the high uptake of solar PV on electricity costs for homes and businesses," Mr Combet said.